Cobalt chokepoints: DRC dominance, China and the Lobito Corridor

With the concentration of cobalt output stemming from two nations, supply chain security has come into focus. An issue Roman Aubry, nickel and cobalt analyst at Benchmark Mineral Intelligence expects to last through 2026.

“2025 has demonstrated the risks associated with having a single country being

He added: “Looking ahead to 2026 it’s clear that the market has to anticipate continued uncertainty from the DRC. While they’ve announced a detailed quota system for the next two years, the DRC reserves the right to adjust it as it sees fit. Given the current ex-DRC cobalt stocks, Benchmark expects there to be significant risk of demand destruction as we approach the end of the year, therefore it is likely the DRC will need to adjust the export quota.”

Concern over China’s control of battery and critical metal supply chains is also likely to carry over through the year, as tensions between Washington and Beijing oscillate and the US looks to fortify its access to the metals.

Aubry pointed to the Lobito Corridor as a key factor in the US securing ex-China supply.

The major rail and port project linking the mineral-rich Copperbelt of the DRC and Zambia to Angola’s Atlantic coast, could reshape the global cobalt supply chain by lowering export costs, speeding transit times and diversifying routes away from China‑dominated infrastructure.

The US International Development Finance Corporation has committed hundreds of millions of dollars in funding to modernize the corridor’s rail and port facilities, potentially boosting annual transport capacity by an order of magnitude and cutting costs by as much as 30 percent compared with existing routes.

“In regards to Western-China relations, we’ve seen the US become increasingly conscious of its reliance on China refining for critical minerals, taking steps to improve ties with the DRC,” said Aubry. “This has mainly come in the form of a strategic agreement to develop the Lobito rail corridor, which would allow the DRC to export cobalt directly to the Atlantic, as well as the establishment of a coordinated Strategic Minerals Reserve within the DRC.”

Is cobalt substitution in the cards?

Before the DRC levied export controls over cobalt exports human rights and child labour concerns around artisinal cobalt extraction plagued the sector.

Paired with the supply chain challenges, battery manufacturers began shifting chemistry away from cobalt-rich formulas, like nickel-cobalt-manganese (NCM) and lithium-iron-phiosphate (LFP) began growing in market share.

In 2025, demand for nickel-cobalt-manganese (NCM) battery cells remained strong in markets focused on longer driving range and performance, particularly in North America and Europe, but lithium iron phosphate (LFP) cells continued their rapid ascent, driven by cost advantages and growing adoption in China and entry-level electric vehicles (EVs).

Industry forecasts project LFP’s share of global battery cell capacity to exceed 60 percent in 2025, reflecting broader shifts toward lower-cost chemistry amid affordability pressures, while NCM and lithium nickel cobalt aluminum oxide (NCA) cells continue to dominate premium segments where energy density remains critical.

Amid a shrinking EV market share, Aubry pointed to overall growth in the EV segment, as well as cobalt’s other end uses as factors likely to support demand.

“While battery chemistries are expected to shift towards lower-cobalt or cobalt- free chemistries, the volume of EV batteries is expected to more than offset this,” he explained.

“From all applications, cobalt demand is expected to grow almost 80 percent in the next decade,

He added: “Outside of the EV space, portables are an area of significant growth, particularly batteries for newer technologies like drones. Industrial applications also present a stable source of growth.”

Market volatility drives need for raw materials hedging

During a presentation at Benchmark Week 2025, Casper Rawles, COO at Benchmark Intelligence, highlighted the growing value of hedging for companies operating in the battery raw materials space.

According to Benchmark data, raw materials could account for 20 percent to 40 percent of battery costs by 2030, exceeding 50 percent for some chemistries.

For EV manufacturers such as BYD (OTCPL:BYDDF), annual spending on critical battery materials could exceed US$2 billion, leaving margins highly exposed to price swings.

Against that backdrop, Rawles underscored the need for more sophisticated hedging strategies, noting that shifts in sentiment, supply, demand and geopolitics can reprice these markets with little warning.

Hedging allows companies to manage commodity price volatility by offsetting exposure in the physical market with positions in the futures market.

Producers and consumers typically hedge either to lock in prices that protect margins or to secure fixed pricing tied to external contracts, buying or selling futures to counterbalance their underlying risk. In practice, firms can tailor these strategies to reduce price exposure partially or eliminate it altogether, depending on their risk tolerance.

As Rawles explained, cobalt’s 2025 price rebound emphasizes how exposed the market is to geopolitics, with the DRC’s export controls triggering a rapid reversal from oversupply to scarcity.

“Ultimately we saw an export quota being put in place. Now that quota is pretty limited,’ said Rawles.

‘When we think about the type of volumes we’re expecting to be needed by the market it’s really not going to be sufficient to fulfill market demand. That really shows how quickly the fortunes of these minerals can change,” he added, noting that the DRC’s dominance gives it outsized influence over global pricing.

Rawles stressed that cobalt volatility is no longer driven by supply and demand alone, but by sentiment and geopolitics, with major implications for battery makers and automakers, where raw materials account for a large share of costs.

“Even if you think you know the outlook at the start of the year, that can change in a heartbeat,” he said.

Transition Metals (TSXV:XTM) is a Canada-based, multi-commodity exploration company laser-focused on discovering the next generation of critical and precious metals in the country’s most prospective and mining-friendly jurisdictions.

With a diversified portfolio spanning platinum group metals, nickel, copper, gold, silver, and uranium, the company offers broad exposure to the metals powering electrification, decarbonization, and long-term resource security.

Operating under a disciplined project generator model, Transition advances early-stage assets through rigorous, geoscience-driven exploration before strategically bringing in partners to help fund drilling and development. This approach preserves capital, limits shareholder dilution, and retains meaningful upside through royalties, milestone payments, and equity interests — while maintaining operatorship and technical control during critical exploration stages.

Company Highlights

• Multi-commodity exploration company with a portfolio of projects and royalties, covering gold, nickel, copper, platinum group metals (PGM), cobalt, tungsten and more located in mining-friendly jurisdictions across Canada
• Flagship PGM exposure at the Saturday Night/Sunday Lake projects in the Thunder Bay region
• Discovery-focused project generator model designed to minimize shareholder dilution while maximizing exploration leverage
• Strong treasury position complemented by marketable securities, milestone payments and royalty interests
• Proven management team with multiple industry discovery awards and a long track record of value creation
• Exposure to critical metals themes supported by government funding, flow-through incentives and secure jurisdictions

This transition Metals profile is part of a paid investor education campaign.*

Click here to connect with Transition Metals (TSXV:XTM) to receive an Investor Presentation

1. Talon Metals (TSX:TLO)

Yearly gain: 629.41 percent
Market cap: C$725.17 million
Share price: C$0.62

Talon Metals is a base metals company advancing the Tamarack nickel-copper-cobalt project in Central Minnesota, US, through a joint venture with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO). Talon currently holds a 51 percent stake in the project and can earn up to 60 percent. The company also owns the Boulderdash nickel-copper discovery in Michigan, US.

In late March, Talon Metals announced a massive sulfide discovery at its Tamarack project, with an intercept measuring 8.25 meters containing 95 percent sulfide content located deeper than the current Tamarack resource.

In May, a further massive sulfide discovery in the same zone, the thickest discovery yet at the site, drove the company’s share price up significantly, and another in early August did the same.

In the August announcement, Talon shared that it named the discovery zone the Vault zone. At the start of Q4, Talon announced an expanded winter drilling and exploration program at Vault. Shares of Talon rallied to C$0.54 on October 14 following the winter drill news and alongside rising cobalt prices.

On October 20, Talon received a 12 month extension from Rio Tinto subsidiary Kennecott Exploration to submit a feasibility study and a US$10 million payment required to increase its ownership stake in the Tamarack project to 60 percent.

To start 2026, Talon Metals completed its previously announced deal with Lundin Mining (TSX:LUN,OTCPL:LUNMF), acquiring Lundin’s producing Eagle nickel-copper mine and Humboldt mill in Michigan.

The deal combines the assets with Talon’s nearby Boulderdash discovery, allowing the company to process ore from Boulderdash at the Humboldt mill. Additionally, Eagle will provide cash flow to help Talon advance Tamarack.

Under the transaction, Lundin Mining received 275.2 million Talon shares and a royalty of US$1 per metric ton of non-Eagle ore processed at the Humboldt Mill, capped at US$20 million. Lundin now holds a 19.99 percent interest in Talon and it will be able to elect two members to the board.

Between the announcement and closing of the deal, shares of Talon rallied to a one year high of C$0.69 on January 6, 2025.

2. Leading Edge Materials (TSXV:LEM)

Yearly gain: 183.33 percent
Market cap: C$63.74 million
Share price: C$0.25

Leading Edge Materials is developing critical materials projects in Europe. The company’s projects include its wholly owned Woxna graphite mine and Norra Kärr heavy rare earths project, both in Sweden, as well as its 51 percent owned Bihor Sud nickel-cobalt exploration alliance in Romania.

According to its June 2025 presentation, exploration work planned for 2025 at Bihor Sud’s G2 gallery includes mapping and sampling of cobalt-nickel and zinc-lead-silver mineralized zones detected visually and by hand-held XRF. Drilling targeting polymetallic mineralization at the gallery is underway.

On the financial side, Leading Edge announced a C$400,000 non-brokered private placement in June.

According to a June 22 activities update, Leading Edge’s Romanian subsidiary was granted ownership and operational permits for the Avram Iancu mine at Bihor Sud, and the team had begun preliminary investigations of the site.

In its quarterly report released September 19, Leading Edge Materials said it is reassessing its prospects after being granted those permits. The Avram Iancu site has extensive historic underground workings and data indicating copper-rich massive sulfide zones, the statement notes.

A competent person report is in progress to consolidate past exploration and outline next steps, while the company evaluates financing options to advance development.

Shares of Leading Edge registered a one year high of C$0.44 on October 14.

In December, Leading Edge Materials cleared a regulatory milestone at its Norra Kärr rare earths project in Sweden, securing county-level endorsements that advance its 25 year mining lease application to a final decision by the Mining Inspectorate.

The company closed the year by joining EIT Raw Materials as a project partner, strengthening its access to Europe’s leading critical minerals innovation network and potential funding channels.

3. FPX Nickel (TSXV:FPX)

Yearly gain: 161.7 percent
Market cap: C$193.52 million
Share price: C$0.62

FPX Nickel is currently advancing its Decar nickel district in British Columbia, Canada.

The property comprises four key targets, with the Baptiste deposit being the primary focus, alongside the Van target. The company also has three other nickel projects in BC and one in the Yukon, Canada.

In February, FPX released a scoping study for the development of a refinery that would refine awaruite concentrate from Baptiste into battery-grade nickel sulfate and by-products of cobalt carbonate, copper and ammonium sulfate. Annual output is anticipated at 32,000 metric tons of contained nickel and 570 metric tons of contained cobalt.

The results show that the process would result in operating and all-in production costs near the bottom of nickel sulfate cost curve, in part due to by-product credits. Additionally, the carbon intensity of the awaruite refinery would be significantly lower than that of currently used production methods.

On September 4, FPX completed a large-scale mineral processing pilot campaign for its Baptiste nickel project, following three prior successful campaigns. The production run generated bulk samples of awaruite concentrate, which will be provided to prospective partners, including pre-cursor cathode active materials, battery producers and automakers, to assess its suitability as feedstock.

Later in the month, FPX secured an option to earn up to 100 percent of the Advocate nickel property in Newfoundland, which was also named the first designated asset under its generative alliance with the Japan Organization for Metals and Energy Security, supporting a planned exploration program.

At the start of Q4, FPX Nickel signed an exploration agreement with the Takla Nation covering its Klow property in Central British Columbia, establishing a collaborative framework for early-stage work and protocols for environmental protection, employment and more.

Later in the quarter, the company received UL Solutions’ ECOLOGO certification, which verifies sustainable practices in the mineral exploration sector. FPX is the first company in Canada operating outside Québec to do so, according to the release.

FPX opened 2026 by qualifying for an upgrade to the OTCQX Best Market, with its shares now trading under the ticker FPOCF.

Two days later, FPX shares reached a one year high of C$0.69 on January 7, 2026.

4. Battery Mineral Resources (TSXV:BMR)

Yearly gain: 125 percent
Market cap: C$22.15 million
Share price: C$0.18

Battery Mineral Resources is focused on developing into a mid-tier copper producer, and recently restarted mine and mill operations at the Punitaqui Mining Complex in Chile.

In Canada, the company holds the largest land position in Ontario’s historic Cobalt district, where it is exploring high-grade primary cobalt deposits at McAra, Gowganda and Elk Lake. Its portfolio also includes energy services and mineral exploration assets in North America, along with graphite projects in South Korea.

In late October, Battery Mineral Resources said it was evaluating strategic options for its Gowganda silver tailings project, located northeast of Sudbury, Ontario. The project lies in one of the country’s most productive past silver-cobalt districts, and the Gowganda mining camp produced 60 million ounces of silver and 1.3 million pounds of cobalt between 1910 and 1969. Gowganda hosts four former mines and associated tailings historically estimated to contain 2.96 million ounces of silver.

On October 16, Battery Mineral Resources reported strong operational performance at its Punitaqui copper project in Chile, driven by improved underground production and plant optimization. Battery Mineral Resources is also advancing development of additional underground operations at Cinabrio Norte and Dalmacia to support further growth from Punitaqui.

At the start of 2026, Battery Mineral Resources unveiled the decision to sell 100 percent of its interest in the Gowganda silver-cobalt tailings project mining leases to Nord Precious Metals (TSXV:NTH,OTCQB:CCWOF).

“We are pleased to enter into this transaction for our shareholders, providing approximately $6.0 million of value along with a 3.0 percent NSR Royalty,” said Laz Nikeas, CEO of Battery Mineral Resources.

Days later, on January 7 the company launched a non-brokered private placement to raise C$34.89 million. The news items helped push shares of Battery Mineral Resources to a one year high of C$0.20 on January 12.

5. Wheaton Precious Metals (TSX:WPM)

Yearly gain: 122.77 percent
Market cap: C$82.43 billion
Share price: C$181.56

Wheaton Precious Metals is one of the largest gold and silver royalty and streaming companies.

It has investments in 18 operating mines and 28 development projects across four continents, including a cobalt streaming agreement for Vale’s (NYSE:VALE) Voisey’s Bay nickel mine in Newfoundland and Labrador, Canada.

Voisey’s Bay is currently in a transitional phase, shifting from the depleted Ovoid open pit to full underground production.

According to Wheaton’s Q3 release, Voisey’s Bay produced 604,000 pounds of attributable cobalt, a year-over-year increase of 52 percent. This came as the underground mine at Voisey’s Bay continued to ramp up, with full production expected in 2026’s second half.

In November, Wheaton closed its gold stream deal with Carcetti, now Hemlo Mining (TSXV:HMMC), providing US$300 million in upfront funding tied to the Hemlo mine transaction. The deal delivers immediate production and cash flow to Wheaton while anchoring a broader recapitalization that supports the asset’s transition under new ownership.

Wheaton shares hit a one year high of C$182.07 on January 13, 2026, as silver and gold continued to hold at historically high price levels.

Graphite prices under pressure

Speaking at the Benchmark Week conference in November 2025, Adam Webb, head of energy raw materials at Benchmark Mineral Intelligence, explained why flake graphite prices — as well as the majority of the battery metals suite — saw weak prices through early 2025, despite a promising demand outlook.

“Essentially, what’s happened here is demand has grown very strongly, but supply growth has actually outpaced demand growth,” Webb said. “Therefore you’ve got the markets in a surplus, and that weighs on prices.”

As graphite prices sank in 2024, a ripple effect impacted supply, hitting the production side hard.

“With flake graphite, you’ll notice it’s actually supply has increased less than demand, and that is because prices were so low that in 2024 you had significant Chinese capacity come offline,’ Webb commented.

‘Also in flake graphite you have competition with synthetic graphite.”

Graphite anodes remain the dominant choice for lithium-ion batteries, but price divergence has sharpened competition between natural and synthetic materials.

Synthetic graphite is expected to retain the largest market share in the near term, thanks to its superior fast-charging performance, durability and electrolyte compatibility. However, natural graphite is gaining attention for its lower cost, higher capacity and lower energy intensity. This competition has divided the market as prices for flake graphite remain low, further pressured by weak demand in the industrial segment.

“Flake pricing on the other hand continues to feel the impact of lower steel demand in 2025 amid declines in Asian and European production in the first seven months of the year,” a September Fastmarkets report notes.

“Expectations among market participants are that production in China will continue to decline through the end of the year and continue to weigh on overall global production.”

Energy storage surge to underpin long-term graphite demand

Despite the market challenges noted by Benchmark’s Webb, the metals consultancy and price reporting agency forecasts 9 percent growth in graphite demand between 2025 and 2035.

This uptick will be strongly supported by a rise in the EV and battery energy storage system (BESS) segments.

“Flake graphite, you’ll see that that price is going up despite the oversupplied market, and that is because to meet that rising demand, there needs to be more supply coming online, and a lot of that supply coming online is high cost. So that’s going to push up the price support, basically, gradually through time,” Webb said.

The BESS market emerged as a major growth driver in 2025, reinforcing long-term demand for battery raw materials, including graphite. As Benchmark outlines, the market for BESS is expected to register roughly 44 percent growth for 2025, almost double the rate of overall lithium-ion battery demand.

As a result, energy storage is set to account for a quarter of total battery demand in 2025.

In North America, momentum has been uneven.

While interest in large-scale storage remains strong, BESS integrators faced mounting pressure in 2025 due to limited domestic battery cell supply, project delays and shrinking margins.

Several leading system providers reported weaker financial results, highlighting the risks of heavy reliance on imported cells and fragmented supply chains.

In Europe, deployed energy storage capacity surpassed 100 gigawatts by November, with batteries accounting for the vast majority of new installations. China, by contrast, saw a renewed surge in energy storage battery shipments. Policy reforms introduced under “Document No. 136” shifted renewable power toward market-based pricing and removed mandatory storage requirements, allowing battery projects to compete on commercial returns.

Together, these regional dynamics underline the growing importance of stationary storage in the global battery market. As BESS capacity expands alongside EVs, demand for graphite anodes is expected to remain structurally strong, even as supply chains and pricing face continued adjustment.

Establishing an ex-China anode supply chain

At Benchmark Week, industry insiders agreed graphite demand will continue to rise through the decade, but the anode supply chain remains constrained by China’s dominance and the high cost of building alternatives elsewhere.

Today, more than 90 percent of battery-grade anode material is sourced from China, a concentration that has become increasingly untenable for western automakers and cell manufacturers.

“Customers are actively looking for diversification,” said Michael O’Kronley, CEO of Novonix (ASX:NVX,OTCPL:NVNXF), noting that supply security has shifted from a long-term aspiration to an immediate priority.

Yet replacing Chinese supply is proving far from straightforward.

A panel featuring graphite executives highlighted that anode qualification can take years, requiring extensive testing to ensure materials perform consistently over a battery’s full lifespan.

“Battery materials aren’t qualified overnight,” O’Kronley said. “It takes years of co-development and patient capital.”

Cost remains the central obstacle. Building an anode plant in North America can cost three to 10 times more than in China, while customers remain reluctant to pay a premium. “A new supply chain has to be paid for somewhere,” O’Kronley warned, arguing that government support is essential if diversification is to scale.

Natural graphite producers face similar pressures.

Financing has become more difficult amid weak prices, even as long-term demand expectations remain strong.

“We expect demand growth closer to 2030,” said Patrice Boulanger, vice president of sales, marketing and business at Québec-focused Nouveau Monde Graphite (NYSE:NMG), adding that government offtake agreements are increasingly critical to unlocking private financing.

Despite growing interest in silicon, lithium metal and other next-generation anodes, the panelists were unanimous that graphite will remain dominant.

“Graphite is clearly here to stay,” said Viren Hira of Syrah Resources (ASX:SYR,OTCPL:SYAAF), with both natural and synthetic materials expected to underpin battery growth through at least the next decade.

Adding context during his own presentation at Benchmark Week, Webb outlined how cost dynamics are reshaping the anode market, particularly the balance between synthetic and natural graphite.

“On the anode side, we’ve seen a move towards synthetic graphite,” he said, noting that the shift has been driven less by performance and more by economics. Producers, he explained, have increasingly turned to lower-quality, lower-cost feedstocks, enabling them to reduce production costs.

As a result, prices for synthetic anode material have fallen, making it more competitive and supporting its growing share of battery anode demand.

Gold price chart, January 12 to 19, 2026.

The yellow metal’s latest rise adds to an ongoing historic run.

After starting 2025 around US$2,640, gold had risen to the US$3,200 level by April. It stayed within a fairly flat range until the end of August, when it launched higher once again, breaking US$4,300 in mid-October.

The price of gold took a breather following that move, even falling briefly below US$4,000; however, its retracement was neither as steep nor as long as many market watchers expected it to be.

Gold began gaining steam again in mid-November, and took off again in earnest at the end of 2025.

In 2026, precious metals have continued to benefit from geopolitical tensions and economic uncertainty. Expectations of interest rate cuts after US Federal Reserve Chair Jerome Powell’s term ends later this year have provided support too. Trump’s feud with the Fed over rates took an eyebrow-raising turn on January 9, when the US Department of Justice served the Fed with grand jury subpoenas targeting Powell with a criminal indictment.

Silver also posted a fresh high of US$94.88 per ounce on Monday.

This latest upswing for the precious metals comes as investors moved out of global stocks following Trump’s threats over the weekend that the European nations opposing his bid to acquire Greenland will face 10 percent tariffs starting February 1. That figure could rise to 25 percent if a deal to secure Greenland for the US is not reached by June.

The nations targeted by the new tariffs include France, Germany, the UK, Denmark, Norway, Sweden, the Netherlands and Finland. The news has prompted fears of a full-blown US-Europe trade war, a weaker US dollar, higher inflation and a worsening outlook for the global economy. There are even concerns the conflict over Greenland could seriously weaken or dismantle the NATO alliance. Gold is traditionally used as a hedge against such risks.

Greenland’s key geographic position in the Arctic has long been coveted by the United States as a necessary strategic asset in its geopolitical struggle with Russia and China. “China and Russia want Greenland, and there is not a thing that Denmark can do about it,” Trump wrote on his social media platform Truth Social. “Only the United States of America, under PRESIDENT DONALD J. TRUMP, can play in this game, and very successfully, at that!”

‘As soon as the probability of escalation increases, defensive capital tends to move preemptively, rather than waiting for tangible impacts to materialize in economic data. In this context, gold functions as a portfolio risk-balancing asset.’

European leaders have responded with vows that they will not be blackmailed into allowing Trump to take Greenland, and are now preparing counter measures to the president’s tariffs.

Gold also continues to benefit from strong central bank buying, while silver’s industrial side is attracting attention. Although it is valued as an investment metal, silver is key for technology such as solar panels.

Elsewhere in the precious metals space, platinum rose close to record highs on Monday, reaching US$2,397.93 per ounce. Palladium remains below its top price level, but is elevated above US$1,800 per ounce.

Overview

Torrent Capital (TSXV:TORR) is a publicly traded investment company providing exposure to an actively managed growth portfolio of public and private investments.

Torrent Capital provides investors with access to a sector-agnostic, actively managed portfolio that blends long-term core holdings with income-generating strategies. Our diversified platform spans public equities, private ventures, and royalty investments. This approach is designed to deliver compounded NAV growth.

Portfolio Overview

Public Equities

Torrent’s core public equity holdings include the following:

Kneat (TSX:KSI) – A leader in SaaS solutions for digitising validation and quality processes in regulated industries, including life sciences. Torrent invested early, recognising Kneat’s scalable platform and its potential to transform compliance-heavy sectors globally.

Lemonade (NYSE:LMND) – An insurance technology company that leverages artificial intelligence to automate operations such as claims processing and policy issuance, disrupting the $2 trillion global insurance market.

SentinelOne (NYSE:S) – A global leader in AI-powered cybersecurity. Torrent invested in SentinelOne for its ability to disrupt traditional security solutions and scale rapidly as enterprises adopt automated threat detection and response.

Fortune Bay (TSXV:FOR) – A Canadian gold exploration company with promising assets in Saskatchewan and Mexico. Torrent’s investment reflects our belief in gold’s enduring role as a hedge against market volatility, coupled with Fortune Bay’s potential to unlock significant resource value through exploration success.

Sona Nanotech (CSE:SONA) – Innovator in nanotechnology with applications across healthcare and diagnostics. Torrent’s investment thesis is based on the potential for Sona’s unique gold nanorods to deliver breakthroughs in medical technology, particularly in diagnostics and cancer treatment.

ReeXploration (TSXV:REE) – A rare earth exploration company focused on the Eureka Project in Namibia. Torrent invested in ReeXploration for its strategic exposure to critical minerals essential to clean energy and advanced technologies.

Private Ventures

Torrent selectively invests in early-stage private ventures with high growth potential.

Holding:

OARO Technologies – A cybersecurity and digital identity company delivering advanced blockchain-powered authentication, digital ticketing, and secure credential solutions. Torrent invested in OARO for its ability to meet the growing global demand for secure, scalable identity management, positioning the company at the intersection of cybersecurity and blockchain adoption.

Royalty Investments

Torrent maintains selective exposure to royalty investments designed to generate potential long-term, recurring cash flows.

Key investment:

Argentia Capital – Argentia Capital is focused on the construction of port infrastructure, the provision of services and equity ownership in businesses that support aquaculture, renewable energy, and oil and gas sectors, as well as other port developments.

Company Highlights

• Proven Performance Across Market Cycles: NAV grew from ~$0.25 in 2017 to ~$0.87 as of November 30, 2025 (15.84% CAGR), Outperforming the S&P500 and TSX Small Cap Index, which increased at rates of 13.13% and 7.77% respectively.
• Diversified Investment Model: Combines public equities, private ventures and royalty investments to balance growth and stability through market cycles.
• Active Management and Transparency: Torrent publishes frequent NAV updates and portfolio disclosures, providing clarity that differentiates it from other investment companies.
• Proven Leadership: Led by CEO Wade Dawe and a team with over C$2 billion in deals completed, Torrent combines decades of entrepreneurial and capital markets experience across public and private companies.
• Strategic focus: Targeted exposure to key growth themes—including artificial intelligence, cybersecurity, and critical minerals—balancing innovation with defensive holdings to produce long-term compounding.

Management Team

Torrent’s leadership is aligned with shareholders and focused on long-term value creation.

Wade Dawe – Chief Executive Officer, Director

Wade Dawe is an Atlantic Canadian entrepreneur and skilled investor. Fiercely independent throughout the entirety of his career, he achieved early success internationally in the resource sector and went on to play a pivotal role in a number of companies as a financier and company founder.

Carl Sheppard – President & Chief Operating Officer, Director

Carl Sheppard is the current president and chief operating officer of Torrent Capital and is also the president and managing partner of Strategic Concepts, a business consulting company. For the past 30 years, he has provided consulting services to many of Canada’s leading resource companies and organizations. He has participated in numerous economic studies, strategic plans, cost/benefit reports and business plans targeted at the identification of development opportunities.

Eric Thompson – Chief Financial Officer

Eric Thompson has over ten years of accounting and assurance experience in both public practice and industry. Prior to assuming the CFO position, he served as the controller of Torrent Capital, contributing to enhanced financial reporting and treasury oversight.

Evan Dawe, CFA – Portfolio Manager – Public Equities

Evan Dawe is a Portfolio Manager at Torrent Capital, focused on identifying high-growth public equity opportunities across U.S. and Canadian markets. He brings a rigorous, fundamentals-driven approach with a strong emphasis on business quality, competitive positioning, and long-term value creation. Evan is a CFA charter holder and holds a Bachelor of Commerce degree from Queen’s University. Prior to Torrent Capital, he served as a Corporate Development Officer at Numus Capital, where he sourced venture capital deal flow and coordinated capital raises for early-stage companies.

Jim Megann – Director

Jim Megann is Managing Director of Numus Financial and serves as a Director of OARO Technologies. He has extensive experience in capital markets, corporate development, and strategic communications, and is the former Chair of NWest Energy.

Carl Hansen – Director

Carl Hansen is CEO of Cascada Silver Corp. and a geologist with more than 30 years of experience in exploration, mining, and public markets. He has led multiple successful exploration companies and has significant experience in corporate finance and capital formation.

Wayne Myles – Director

Wayne Myles is a legal advisor specializing in international mergers and acquisitions, corporate, and commercial law. He provides strategic legal guidance to Torrent’s management and board on governance and cross-border transaction structures.

1. Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF)

Ucore Rare Metals claimed the top overall position on this year’s OTCQX Best 50 list.

Ucore is focused on developing downstream rare earths separation and refining infrastructure, with a particular emphasis on heavy rare earths used in permanent magnets for defense, clean energy and advanced manufacturing.

Central to that strategy is the company’s planned Strategic Metals Complex in Louisiana, US, which is being developed with backing from the Department of Defense and the state of Louisiana.

In August, Ucore moved to strengthen its future feedstock supply by signing a non-binding letter of intent with Critical Metals (NASDAQ:CRML) for a proposed 10 year offtake arrangement tied to the Tanbreez rare earths project in Southern Greenland. Deliveries will start in in 2027 or upon commercial production — whichever is later.

The company has also advanced the technical and financial foundations of its US refining plans. In mid-2025, Ucore and representatives of the defense department completed the formal project kickoff for an US$18.4 million Phase 2 award to support construction of the company’s first commercial-scale RapidSX separation system at the Louisiana site.

The Phase 2 funding focuses on demonstrating the effectiveness of Ucore’s proprietary technology in separating key rare earth elements, including dysprosium, a critical input for high-performance permanent magnets.

2. Discovery Silver (TSX:DSV,OTCQX:DSVSF)

Discovery Silver ranked third overall on this year’s OTCQX Best 50 list, capping a year marked by a major acquisition that repositioned the company as a Canada-based gold producer.

In early 2025, Discovery reached an agreement with Newmont (NYSE:NEM,ASX:NEM) to acquire the Porcupine operation in Ontario for total consideration of US$425 million. The deal represented the final phase of Newmont’s divestiture program as it streamlined its portfolio to focus on tier-one assets.

Located in Ontario’s Timmins Mining Camp, the Porcupine Complex is one of Canada’s most prolific gold-producing districts, with approximately 70 million ounces of gold produced since 1910.

The assets acquired by Discovery include the Hoyle Pond underground mine, one of North America’s highest-grade gold mines with more than 4 million ounces produced since the late 1980s.

Following completion of the acquisition, Discovery said it intends to continue both production and exploration activities across the Porcupine Complex as part of its broader growth strategy.

3. Andean Precious Metals (TSX:APM,OTCQX:ANPMF)

Andean Precious Metals placed fourth on this year’s list.

In November 2025, Andean secured a new US$40 million revolving credit facility with National Bank of Canada, enhancing its financial flexibility as it advances its strategic and operational priorities. Andean said the facility improves liquidity and provides a more efficient cost of capital compared with its previous arrangements.

Earlier in the year, the company entered into a long-term agreement with Corporación Minera de Bolivia (COMIBOL) to purchase up to 7 million tonnes of oxide ore from mining concessions located within a 250 kilometer radius of Andean’s San Bartolomé processing facility. The 10 year agreement provides Andean with a potential long-term source of feedstock, subject to economic viability under prevailing market conditions.

4. Rio2 (TSXV:RIO,OTCQX:RIOFF)

Taking the fifth spot is Rio2, which in December of last year completed its acquisition of Southern Peaks Mining’s 99.1 percent interest in the Condestable mine in Peru, valued at US$241 million.

Condestable, a well-established underground copper-gold operation, is forecast to produce approximately 27,000 metric tons per year of copper equivalent (around 80,000 ounces gold equivalent) and has a reserve life of over 10 years.

The company is also advancing its flagship Fenix gold project in Chile, where first gold production is scheduled for this month. Early gold recovery is expected within 30 to 40 days, and the project includes long-term expansion potential up to 300,000 ounces annually over 10 years.

5. Lundin Gold (TSX:LUG,OTCQX:LUGDF)

Lundin Gold secured the seventh spot in this year’s OTCQX Best 50 list. It operates the Fruta del Norte gold mine in Southeast Ecuador, one of the highest-grade gold operations in the world.

In 2025, the company was named to the TSX30 list of top-performing companies, ranking second with a dividend-adjusted share price appreciation of 775 percent over the three years ended on June 30.

The year also brought a leadership transition, with Ron Hochstein stepping down as president and CEO after 10 years of leadership. Jamie Beck, former CEO of Filo, assumed the role effective November 2025.

6. Graphite One (TSXV:GPH,OTCQX:GPHOF)

Claiming the eight spot on the OTCQX Best 50 list is Graphite One, which in November of last year confirmed the presence of rare earths at its Graphite Creek deposit, located north of Nome, Alaska. Geochemical analysis of drill core samples identified elevated levels of heavy rare earths, as well as all five principal permanent magnet rare earths.

Graphite One is currently advancing a fully integrated, US-based graphite supply chain, encompassing mining at Graphite Creek, transport through the port of Nome, and downstream processing at a planned advanced graphite and battery materials facility in Warren, Ohio. The Ohio complex is also designed to include a co-located recycling facility intended to reclaim graphite and other battery-related materials. The project has received significant federal backing, including a US$37.5 million Defense Production Act Title III grant.

7. G Mining Ventures (TSX:GMIN,OTCQX:GMINF)

G Mining Ventures placed ninth on this year’s OTCQX Best 50 list.

In 2025, shares of G Mining were added to several major equities indexes, including the NYSE Arca Gold Miners Index (INDEXNYSEGIS:GDM), the MVIS Global Junior Gold Miners Index, the S&P/TSX Composite Index (INDEXTSI:OSPTX) and the iShares MSCI Canada ETF (ARCA:EWC).

The company is anchored by the Tocantinzinho gold mine in Brazil and the Oko West gold project in Guyana. A key development came this past December, when the Guyana Geology and Mines Commission granted G Mining a 20 year mining license for its 100 percent owned Oko West project.

The mining license followed the issuance of a final environmental permit in September and the company’s formal construction decision in October. Early works that began under an interim environmental permit have continued under the final approval, allowing construction activities to progress without interruption.

8. Heliostar Metals (TSXV:HSTR,OTCQX:HSTXF)

Gold producer Heliostar Metals comes in at number 10 on the OTCQX Best 50 list.

Heliostar’s growth strategy is centered on its portfolio of Mexican assets, including two producing mines and four development-stage projects, which have become the foundation of its expansion plan. Ana Paula is its flagship development project, with a feasibility study scheduled for completion in H1 2027.

Alongside Ana Paula, Heliostar is focused on increasing production and extending mine life at its La Colorada and San Agustin operations in Mexico.

Bitcoin and Ether price update

Bitcoin (BTC) was priced at US$93,135.95, down by 2.2 percent over 24 hours.

Bitcoin price performance, January 19, 2025.

Chart via TradingView

Ether (ETH) was priced at US$3,209.04, down by 3 percent over the last 24 hours.

Altcoin price update

• XRP (XRP) was priced at US$1.98, down by 3.8 percent over 24 hours.

• Solana (SOL) was trading at US$133.82, down by 6.1 percent over 24 hours.

Today’s crypto news to know

Tariff shock rattles crypto as Trump targets Europe

Crypto markets sold off sharply after President Donald Trump said the US would impose escalating tariffs on eight European countries in a dispute tied to Greenland, triggering a rapid risk-off move.

According to derivatives data, roughly US$875 million in leveraged crypto positions were liquidated within 24 hours, which was further amplified by thin holiday liquidity.

Bitcoin slid about 3 percent to near US$92,000, with most forced unwinds coming from bullish bets caught wrong-footed by the geopolitical jolt.

European leaders signaled retaliation, adding to broader market uncertainty across equities, FX, and digital assets.

The proposed tariffs would start at 10 percent in February and rise to 25 percent by June.

Saylor hints at more bitcoin buys after billion-dollar week

Strategy (NASDAQ:MSTR) chair Michael Saylor is again fueling speculation of another bitcoin purchase just days after the company disclosed a $1.25 billion addition to its holdings.

In a weekend post, Saylor shared a familiar chart tracking Strategy’s past buys, a signal he has repeatedly used ahead of formal announcements.

The company has already added nearly 15,000 BTC since the start of the year, bringing total holdings above 687,000 bitcoin. Those coins were accumulated at an average price in the mid-US$75,000 range.

Still, Strategy’s equity has lagged as investors weigh the risks of heavy leverage and ongoing capital raises. The firm continues to rely on instruments like convertible notes to fund purchases without immediate cash strain.

Dormant bitcoin whale cashes out after 12 years

One of Bitcoin’s long-silent early holders has resurfaced, selling a large portion of coins accumulated in 2012 and locking in a staggering gain.

Blockchain data shows the wallet sold roughly 2,500 BTC at prices above US$100,000, turning an original outlay of just over US$300 per coin into hundreds of millions of dollars.

The realized return exceeds 31,000 percent, making it one of the most profitable long-term exits in Bitcoin’s history.